ADB maintains Vietnam’s economic growth at 6% in 2024, 6.2% in 2025
Vietnam’s economic growth can reach 6% in 2024 and 6.2% in 2025, following a 6.4% expansion in the first half of 2024, the Asian Development Bank (ADB) said in the July edition of its Asian Development Outlook (ADO).
The forecast is unchanged from the April edition. Vietnam’s figures are among the highest in Asia, only below India with 7% for 2024 and 7.2% for 2025.
![A corner of Hanoi. Photo courtesy of VietNamNet newspaper.](https://i.ex-cdn.com/theinvestor.vn/files/content/2024/07/17/hanoi-1500.jpg)
A corner of Hanoi. Photo courtesy of VietNamNet newspaper.
Growth is supported by the strong recovery of both imports and exports and the revival of domestic demand as monetary policy remained accommodative, the bank noted.
Growth is also supported by fiscal measures such as the continued 2% reduction in value-added tax and efforts to better implement public investment, it added.
External demand for major electronics exports fueled industrial production, according to the ADB, but “subdued global economic prospects leave some uncertainty”.
Reviewing the continent's development, the lender said East Asia dominates high-technology goods production and other economies are also benefiting from the current semiconductor boom. “These include the Philippines and Vietnam, which specialize in integrated circuit packaging and electronics assembly,” according to the ADB.
Regarding inflation, the ADB forecast Vietnam’s figures at 4% in 2024 and 4% in 2025, below the Pacific’s average of 4.3% in 2024 and 4.1% in 2025.
In July, Prime Minister Pham Minh Chinh said Vietnam will strive to achieve a GDP growth of 6.5-7% in Q3/2024. The 7% goal is higher than the National Assembly’s target of 6-6.5% for the whole year.
Also in July, Singapore’s leading bank UOB said it kept its GDP growth projection for Vietnam unchanged at 6% for this year, although the Q2 performance exceeded the bank’s and market expectations.
In a June 20 release, S&P Global said following Vietnam’s relatively lackluster GDP growth of 5.05% in 2023, it expects healthier global demand conditions to support an acceleration to 5.8% in 2024.
The credit rating agency anticipates the country’s GDP growth at 6.7% in 2025, 6.7% in 2026, and 6.7% in 2027.
Vietnam’s economic expansion reached 6.93% in Q2/2024, according to its General Statistics Office.
- Read More
Tra Vinh province seeks 5-star hotel investments to attract more foreign tourists
Tra Vinh is looking for 5-star hotel investments in the southern Vietnam province to attract greater numbers of international tourists, said Duong Hoang Sum, director of its Department of Culture, Sports and Tourism.
Real Estate - Mon, August 19, 2024 | 2:16 pm GMT+7
USD prices in Vietnam ease amid robust supplies, Fed cut hopes
U.S. dollar prices in Vietnam, on both official and free markets, have been on the decline over the past month as greenback supplies rise and the Fed is expected to cut rates soon.
Banking - Mon, August 19, 2024 | 12:05 pm GMT+7
Japanese beverage maker Suntory aims to open new plant in Vietnam in Oct 2025
Japan-based brewing and distilling firm Suntory, a partner in Vietnam-based Suntory PepsiCo Vietnam Beverage Co. Ltd., aims to open a new factory in Vietnam in October 2025.
Industries - Mon, August 19, 2024 | 10:46 am GMT+7
Vietnam welcomes Guangdong investment in infrastructure: Party chief
Vietnam welcomes businesses of China’s Guangdong province to expand high-quality investment in infrastructure, Party General Secretary and State President To Lam has stated, as the two countries seek to enhance transport links for more robust trade and tourism exchanges.
Industries - Mon, August 19, 2024 | 9:37 am GMT+7
Japan to coordinate decarbonisation plans with ASEAN, Australia
Japan will coordinate with Southeast Asian countries and Australia on policies that reduce carbon emissions in a region that is particularly reliant on fossil fuels, according to Nikkei Asia.
Southeast Asia - Mon, August 19, 2024 | 8:33 am GMT+7
Philippine President confident more investments to come
President of the Philippines Ferdinand R. Marcos Jr. is optimistic that the Philippines’ “A-” investment grade rating by Japan-based Rating and Investment Information, Inc. (R&I) would drive more investments into the country, reported the Philippine News Agency (PNA).
Southeast Asia - Mon, August 19, 2024 | 8:30 am GMT+7
Singapore strengthens security in finance sector
The Monetary Authority of Singapore (MAS) has cooperated with banks to seek solutions on quantum security in finance sector.
Southeast Asia - Mon, August 19, 2024 | 8:29 am GMT+7
Thailand’s economy shows positive signs
The Thai Industries Sentiment Index (TISI) increased for the first time in four months to 89.3 points in July, driven by higher demand for food, medicine and cosmetic products, said the Federation of Thai Industries (FTI).
Southeast Asia - Mon, August 19, 2024 | 8:28 am GMT+7
Thailand to tighten regulations on foreign businesses
The Department of Business Development (DBD) in Thailand is stepping up efforts to enforce laws governing foreign businesses, ensuring fair competition for Thai entrepreneurs.
Southeast Asia - Mon, August 19, 2024 | 8:27 am GMT+7
Thorough impact assessment needed before excise tax hike on beverages: expert
Comprehensive impact assessments are needed before excise tax adjustments on beverages since they can cause shock and damage, says Nguyen Van Phung, former head of the Bureau of Large Enterprises Management under the Ministry of Finance’s General Department of Taxation.
Finance - Mon, August 19, 2024 | 8:10 am GMT+7
FPT consortium kicks off urban area-AI center project in central Vietnam
A consortium of tech giant FPT Corporation's subsidiaries on Sunday commenced construction on a VND4.36 trillion ($174 million) project to build an artificial intelligence (AI) center and its supporting urban area in Vietnam’s central province of Binh Dinh.
Industries - Sun, August 18, 2024 | 10:05 pm GMT+7
Thai King endorses new Prime Minister
Thai King Maha Vajiralongkorn endorsed Paetongtarn Shinawatra as Prime Minister of the country on Sunday, two days after her election by the House of Representatives.
Southeast Asia - Sun, August 18, 2024 | 5:33 pm GMT+7
Only 1 new commercial housing project licensed in southern Vietnam in Q2
Vietnam had 19 newly licensed commercial housing projects with about 10,230 units in the second quarter of 2024, including nine in the north, nine in the central region, and only one in the south, according to the Ministry of Construction.
Real Estate - Sun, August 18, 2024 | 3:00 pm GMT+7
Vietnam's registered investment capital in Laos hits $5.5 bln
Vietnamese enterprises have invested in 256 projects in Laos, with total registered capital of $5.5 billion, in the fields like telecommunications, banking, rubber planting and processing, food production, and dairy.
Industries - Sun, August 18, 2024 | 1:36 pm GMT+7
Collateral quality a challenge for Vietnam’s corporate bond market: broker
Among an array of challenges and risks facing Vietnam’s corporate bond market, a particularly important one is the quality of collateral, says broker VietinBank Securities.
Finance - Sun, August 18, 2024 | 11:00 am GMT+7
HCMC, not Vietnam labor ministry, to issue, extend work permits for foreigners in city
Ho Chi Minh City People’s Committee will now process several labor-related applications for foreigners, instead of the Hanoi-based Ministry of Labor, Invalids and Social Affairs (MoLISA), according to a new governmental decree.
Economy - Sun, August 18, 2024 | 9:39 am GMT+7